Japanification is limiting financial excesses | Japan

Unlike in other advanced economies, Japan’s long period of low interest rates hasn’t caused high leveraging or major asset price bubbles, which are other important but often overlooked features of “Japanification.”

Instead, the major domestic financial fragility is bank lending’s credit costs as banks gradually increased exposures to middle-risk firms and real estate businesses.

By reading our research briefing, you will learn:

  • How Japan has limited leveraging despite a long history of low interest rates
  • Ways in which the major domestic financial fragility is rising credit costs
  • The various factors that have contributed to uncertain prospects for the real estate leasing business

Topics: Japanification

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